BILL NUMBER: AB 1525	CHAPTERED  03/28/00

	CHAPTER   7
	FILED WITH SECRETARY OF STATE   MARCH 28, 2000
	APPROVED BY GOVERNOR   MARCH 28, 2000
	PASSED THE ASSEMBLY   MARCH 16, 2000
	PASSED THE SENATE   MARCH 13, 2000
	AMENDED IN SENATE   FEBRUARY 28, 2000
	AMENDED IN SENATE   FEBRUARY 18, 2000
	AMENDED IN SENATE   FEBRUARY 9, 2000
	AMENDED IN ASSEMBLY   JANUARY 24, 2000
	AMENDED IN ASSEMBLY   MAY 24, 1999

INTRODUCED BY   Assembly Members Thomson and Wesson and Senator
Perata
   (Coauthors:  Assembly Members Cox, Pescetti, and Steinberg)
   (Coauthors:  Senators Johannessen, Johnston, McPherson, and Ortiz)

                        FEBRUARY 26, 1999

   An act to amend Sections 23824 and 25503.6 of the Business and
Professions Code, relating to alcoholic beverages, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1525, Thomson.  Alcoholic beverages:  licenses:  "tied-house"
restrictions:  advertising restrictions.
   Existing law exempts premises owned by the state or designated
local agencies, or leased by those local agencies from specified
limitations on the number of licensed premises.
   This bill would extend those exemptions to include premises leased
by the state.
   Existing provisions of the Alcoholic Beverage Control Act known as
"tied-house" restrictions generally prohibit certain alcoholic
beverage licensees from holding an interest in various other
alcoholic beverage licensees.  Existing law generally prohibits a
manufacturer of alcoholic beverages and a winegrower from paying,
crediting, or compensating a retailer for advertising or paying or
giving anything of value for the privilege of placing a sign or
advertisement with a retail licensee.  It authorizes, as an
exception, the holder of a beer manufacturer's or winegrower's
license to purchase advertising space and time from, or on behalf of,
an on-sale retail licensee, subject to specified conditions,
including that the on-sale licensee is the owner, an agent of the
owner, manager of the stadium or arena, assignee of the owner's
advertising rights, or the major tenant of the owner, of one of
various designated facilities, including an outdoor stadium or a
fully enclosed arena with a fixed seating capacity in excess of
10,000 seats located in a county of the 8th class.
   This bill would extend that exception to an on-sale licensee who
is the owner, manager, agent of the owner, assignee of the owner's
advertising rights, or the major tenant of the owner of an outdoor
stadium with a fixed seating capacity in excess of 10,000 seats
located in Yolo County.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 23824 of the Business and Professions Code is
amended to read:
   23824.  Limitations provided by Section 23816 on the number of
licensed premises shall not apply to premises owned by the State of
California, any incorporated city, county, city and county, airport
district, or other district or public corporation of the State of
California or to premises leased to the State of California or to any
city or county, so long as the premises are operated as a bona fide
public eating place, provided, however, that civic auditoriums owned
by any incorporated city, county, city and county, or other district
or any premises leased to the State of California or to any county or
city for use as a civic auditorium and directly operated by a public
entity shall be subject to the limitations provided by Section
23816, but shall not be required to be operated as a bona fide public
eating place.  The civic auditorium shall further not be subject to
the provisions of Section 23793.
   Licenses issued on premises owned by the state, incorporated city,
county, city and county, airport district, or other district or
public corporation of the State of California, or issued on premises
leased to the State of California or to any county or city, shall be
renewable as set forth in Section 24048.  These licenses shall be
excluded from the number of premises used in determining application
of the limitations provided by this article.  These licenses shall be
subject to an original fee of six thousand dollars ($6,000) and
shall be only transferable from person to person at the same
premises.  Prior to the issuance of these licenses, the governmental
agency owning or leasing the premises shall file with the department
a written request that the license be issued and a written statement
setting forth the reasons why issuance of the license would be in the
public interest.
   A written request filed with the department by the governmental
agency owning or the city or county leasing premises used as a civic
auditorium and directly operated as a public entity that the license
be issued need not contain a written statement setting forth the
reasons why issuance of the license would be in the public interest.

   Funds derived from fees collected pursuant to the amendments made
to this section at the 1975-76 Regular Session of the Legislature
shall be deposited in the General Fund.
  SEC. 2.  Section 25503.6 of the Business and Professions Code is
amended to read:
   25503.6.  (a) Notwithstanding any other provision of this chapter,
the holder of a beer manufacturer's or winegrower's license may
purchase advertising space and time from, or on behalf of, an on-sale
retail licensee subject to all of the following conditions:
   (1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner's advertising rights, or the major
tenant of the owner of any of the following:
   (A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located within a county of
the eighth class, as defined in Section 28029 of the Government
Code.
   (B) A fully enclosed arena with a fixed seating capacity in excess
of 18,000 seats located in Orange County.
   (C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.
   (D) An exposition park of not less than 50 acres that includes an
outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located within a county of the fourth class,
as defined in Section 28025 of the Government Code.
   (E) An outdoor stadium with a fixed seating capacity in excess of
10,000 seats located in Yolo County.
   (2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.
   (3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the stadium or arena
owned by the on-sale licensee.
   (4) The on-sale licensee serves other brands of beer or wine in
addition to the brand manufactured by the beer manufacturer or
produced by the winegrower purchasing the advertising space or time.

   (b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the holder of the beer manufacturer's or winegrower's
license and the on-sale licensee.
   (c) Any holder of a beer manufacturer's or winegrower's license
who, through coercion or other illegal means, induces a holder of a
beer or wine wholesaler's license to fulfill those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment in the
county jail not exceeding six months, or by a fine in an amount equal
to the entire value of the advertising space or time involved in the
contract, plus ten thousand dollars ($10,000), or by both
imprisonment and fine.  The person shall also be subject to license
revocation pursuant to Section 24200.
   (d) Any on-sale retail licensee, as described in subdivision (a),
who solicits or coerces a holder of a beer or wine wholesaler's
license to solicit a holder of a beer manufacturer's or winegrower's
license to purchase advertising space or time pursuant to subdivision
(a) or (b) shall be guilty of a misdemeanor and shall be punished by
imprisonment in the county jail not exceeding six months, or by a
fine in an amount equal to the entire value of the advertising space
or time involved in the contract, plus ten thousand dollars
($10,000), or by both imprisonment and fine.  The person shall also
be subject to license revocation pursuant to Section 24200.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to alleviate licensing restrictions regarding nonprofit
organizations and to avoid any possibility of impropriety in the
spring and summer operations of licensees at the earliest possible
time, it is necessary for this act to take effect immediately.
